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Medicare Advantage insurers plan $0 premiums, but cut supplemental benefits
CMS set Medicare Advantage payments for 2027 to rise an average 2.5%, even as insurers look to protect margins by reducing extras like grocery cards and dental allowances.
Medicare Advantage insurers are preparing to keep $0 premiums for 2027 while trimming supplemental benefits tied to areas like grocery cards, dental coverage, gym or fitness access, and hearing aid assistance, according to analysis summarized by Yahoo Finance.
A typical mid-tier plan could deliver less annual value in 2027 after reductions in items such as grocery cards, dental allowances, gym access, and hearing aid coverage, even when the premium remains unchanged.
In a hypothetical example described in the article, a beneficiary sees the $0 premium stay the same while the monthly grocery card falls and dental and fitness related benefits are reduced, reflecting the pattern analysts said became evident earlier.
Yahoo Finance also notes that CMS finalized an average 2.48% increase in Medicare Advantage payments for 2027 and expects more growth through risk-score changes, but insurer executives have said funding may not fully cover rising medical utilization and their profit targets.